5 Bookkeeping tips for small business owners in Dubai

Bookkeeping is one of the most important aspects of a business. Good financial records enable you to manage debts, deposits and credit items better. A lack of proper bookkeeping can land your business in a whole lot of trouble even before it takes off.

Bookkeepers in Dubai are credited with a major part of a business’s success. It is their job to keep a track of every expense and deposit made on the business’s behalf, so that unnecessary expenses are kept to a bare minimum.

However, some small start-ups cannot afford to hire a bookkeeper right at the get-go. That's why they have to do the bookkeeping themselves. If you don't have a system or know the processes, bookkeeping can be quite overwhelming.

To help you overcome these difficulties, here are 5 bookkeeping dubai tips for small businesses: 

1.       Plan for major expenses

You need to understand and prepare for any major expenses that may be coming up in the near future. These expenses may include office upgrades or important investments.

Take into account the occasional ups and downs in the seasonal activity of your business, since they will directly affect your spending abilities during that time. If you plan the expenses beforehand, you will have no problem in running the company when business is slow. 

2.       Track Expenses

Tracking expenses is a hard thing to do even in day-to-day life. Imagine how difficult it would be when you are running a business. Nevertheless, you have to do your best to keep a check on how much you spend to avoid going overboard.

Business credit cards help in maintaining the expenses as well as in tracing how much money has gone where. Also make note of smaller expenses like lunches, events and coffee meetings, as well as car mileage. This will help you substantiate your expenses if you are audited. 

3.       Record deposits correctly

Keep an eye on how much is being deposited in your business’s account at all times. You can use a notebook, an Excel spreadsheet, or any other software to help you with this task.

If you are unable to track where all your expenses are being funded from, you will be liable to pay taxes on money that was not there in the first place.

4.       Make sure you have enough for taxes 

You will soon learn how important taxes are to your business. That is why you should always keep money aside to pay your taxes. Unpaid taxes call for unnecessary penalties, and consequently for unnecessary expenses. Make sure that you keep aside an amount whenever money comes in so that you can pay the takes on time.

5.       Always check your invoices:

Paying bills on time is probably one of the best things you can do while running a business. Late or unpaid bills call for penalties and fines, and that will result in you spending more money than required. 

Also, make sure that clients are paying your bills on time. to be on the safe side, device a plan for when they are a month, two months or even three months late. Inform them about the penalties before they sign the contract.